(1) A property’s fair market value is its accurate valuation in a free and open market under the condition that buyers and sellers are knowledgeable about the asset, acting in their best interests, and free of undue pressure to complete the transaction.
(2) The whole point of having an appraisal and assessment completed for a home for sale is to determine that property’s value. Generally speaking, the dollar figure put forth by the appraiser and assessor is averaged out with other residential figures from the local market. Comparable sale prices are factored in, thus giving sellers a relative fair market value for their home. As Investopedia notes, developing a fair market value for a listing is an imperfect science, but this is the typical formula for gauging what one’s home could go for if listed.